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UNIF(1RM COVQNANTS. Borrower and Leadet rnvenant and agree u follows:
1. l~,ymeat ot Trlacipal ud latereat. Bo~rowe~ shall p~omptly pay when due the principal of and interest on the
indebtedness evidencrd by the Note. prepayaaent and late chargcs as Provided in the Note, and the principal of ~nd inter~est
on aay Futuro Advances secured by this Mortga~es.
2. ihad~ tor Tua aad laar~uce. Stiubject to applicabk law or to a written waive~ by Lender. Borrower ahall pay
to Lender on the day monthly installments of principal and i~terost arc payAble under the Note, u~til the Note is paid in full.
a:um (hereiq "Fun~'~ equal to onatwelfth of the yearly taxes and assessmc~ts which may attain priority over this
Mo~tgage. and ground rents an the Properry. if any, plus onatwelfth of yearly pnmium i~stallmenu for hazard i~surance.
plua onatwel(th of yearly premium installments for mongage insurance, if any. all as reasonably atimated initially and fmm
dme to time by Lender ou the basis of assessments and bills and reuonabk estimates thereof.
'Il~e Funds shall be held in an inatitution the deposits or iccounts of which are insured or gwranteed by a Federal or
state a~eocy (including Lender if Lender is such a~ inatitution). l.ender shall apply the Funds to pay said taxes~ asseasmeata.
insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account.
or verifying a~d compiling said assessments and bills, unlas Lender pays Borrower interest on the Funds and applicable law
permiu Lender to make such a charge. .Borrower and Lender may agrce i~ writing at the time o[ execution of this
Mortgage that interest on the Funds shall be paid to Borrower, and unless such agrcement is made or applicable law
requires such interest to be paid. I.~nder shall not bc required to pay Borrower any interest or earnings on the Funds. L.ender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for wh~h each debit to the Funds was made. 'ilie Funds arc pledged as additional socurity for the sums secured
by this Mortgage.
If the amount of~the Funds held by Lender, together with the future monthly installments of Funds payable prior to
the due dates of taxes, assessments, i~surance premiums and ground rents, shall exceed the amount requircd to pay said taxes,
assessments. insurance premiums and ground rents as they fall due, such ~xcess shall be, at Borrower s option. either
pranptly repaid to Bormwer or credited to Borrower on monthly installments of Funds. lf the amount of the Funds
held by Lender shall not be suf6cient to pay taxes. assessments, insurancc premiums and ~round rents as they fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date natice is mailed
by Lende~ to Borrower requesting payment thereof.
Upon payment ia full of all aums secured by this Mortgage, i.ender shall promptly refund to Borrower any Funds
held by l.ender. If under patagraph 18 hereof the Property is wld or thc Property is otherwise acquired by Lender. Lender
shall apply. no later than immediately prior to the ssle oi the Properiy or its acquisition by I~nder, any Funds held by
[.ender at the time of application as a credit against the sums secured by this Mortgage.
3. Applicatlon of Paymeats. Unless applicable law provides olherwise, all payments received by Lender under the
Note and paragraphs 1 and 2 hereof shall be applied by 1_ender first in payment of amounts payable to Lender by Borrower
under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and
principal o~ any Future Advances. '
d. Charges; Liens, Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
tbe Property which may attain a priority over this Mortgaae, and leasehold payme~ts or ground rents. if any, in the manaer
provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due, directly to the
payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, aad in the event
Borrower shall make payment directly. Borrower shall promptly turnish to Lender receipts evidencing such payments.
Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be
required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation securcd by
such lien in a manner acceFtable to Lender, or shall in good faith conte~t such lien by. or defend enforcement of such lien in,
legal proceedin~s which operate to prevent the enforcement of the lien or forfeiture of the Property or any part ihereof.
S. Huard Insurance. Bonower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by 6re, hazards included within the term "extended coverage", and such other hazards as Lender may require
and in such amounts and for such periods as Lender may reyuire; provided, that Lender shall not require that the amount of
such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
T6e ituurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided,
that such approval shal! not be unreasonably withheld. All premiums on insurance policies shall be paid in the manaer
provided under paragraQh 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the
insurance carrier.
All insurance policies and renewals thereof shali be in form acceptable to Lender and shall include a standard mortgage
clause in favor of and in form acceptable to Lender. l.ender shalt have the right to hold the policies and renewals thereof,
and Borrower shall promptly furnesh to I.ender all renewal notices and all receipts of paid premiums. In the event of loss.
Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly
by Borrowcr.
Unless Lender and Borr~wer otherwise agree in writing, insurance procceds shall be applied to restoration or repair of
the Property damaged. provieied such restoration or repair is economically feasible and the security of this Mortgage is
not thereby impaired. If such restoration or repair is not economically teasible or i( the security of ihis Mortgage would
be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess. if any. paid
to Borrower. If the Prdperty is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits. I.ender
is aut6orized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
or to the sums secured by this Mortgage.
Unless L.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not eztend
or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
such installments. If under paragraph~ 18 6ereof the Property is acquired by I.ender, all righl, tide and interest of Borrower
in and to any iasurance p~licies and in and to the proceeds thereof resulting from damage to the Property prior to the sale
or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
acquisition.
6. Preservation and Maiatenance of Property; Leasehold~ Condominiums; Planned Uolt Derebpments. Borrower
shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property
and shall comply with the provisions of any Icase if this Mortgage is on a leasehold. If this Mortgage is on a unit in a
condominium or a planned unit development, Borrower shall perform all of Borrower s obligations under the declazation
or coveaants creating or governing the condominium or planned unit development, the by-laws and regulations of the
condominium or planaed unit development, and constituent documents. If a condominium or planned unit development
rider is executed by Borrower and recorded together with this Mortgage, the covenants and agrcements of such rider
shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage u if the rider
were a part heroof.
7. Protectfoa of Le~er's Security. If Borrower fails to perform the covenants and agreements contained in this
Mortgage, or if any action or proceeding is commenced which materially afiects I_ender's interest in the Property,
including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a
bankrupt or de:edent, then Lender at Lender's option, upon notice to Borrower, may make sych appearances, disburse such
sums and take such action as is necessary to protect Lender s interut, including, but not limited to. disbursement of
reasonable attomey's tees and entry upon the Property to make repairs. I( Lender required mortgage insurance u a
condition of making the loan secured by this Mortgage. Borrower shall pay ihe premiums required to maintain such
insurance in elTect until such time as the requirement [or such insurance terminates in accordance with Borrower s and
. f~(!i)K348 PaGE~54
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